The Daily Decision for 8.7.17

Publishing Note: My wife and I am closing and moving into our new home this week. Thus Daily Updates will be published only as my schedule permits. However, as usual, we will publish TRADE ALERTS before any adjustments are made to the portfolio.

The Early Take on the Market:
North Korea's obsession with missiles, the issues of Tax Reform and the Debt Ceiling, and what I call "Fed Expectations" are in focus this week. On the latter, note that, according to Bloomberg, the futures-implied odds of another rate hike in 2017 currently stand at just 40% as many folks contend that the FOMC is more interested in beginning a "balance sheet normalization" plan than hiking rates again soon. However, with both PIMCO and BlackRock publicly talking about inflation hitting the Fed's 2% target in the near-term after Friday's better-than expected jobs report, we should probably be on the lookout for the "reflation trade" to make a comeback. Thus, traders will be paying particular attention to every word uttered as Fed officials return to the speaking circuit this week.

Turning to our portfolio...

LEADERS Model: The LEADERS model currently holds Technology, Healthcare, and Materials. As for performance, we continue to be pleased as the LEADERS model is up +13.4% ytd compared to 10.6% for S&P 500.

CORE EXPOSURE Model:
Today's CORE model's exposure is now a bit above today's target at 90% vs. 80%. Thus, we are largely in line with the model at this time.

TRADING Model: We currently hold trades in the India Small Caps, Eurozone, a dividend-payer ETF, and the emerging markets.

How To Use the DDTS Models: We trade the 3 models independently to allow for the models to be used on a standalone basis. If we were forced to utilize just one model, it would be the LEADERS for growth orientation, the CORE for a more conservative, risk managed approach, and the TRADING model for an opportunistic "value-add" trading approach.

Daily Decision Trading ServiceCurrent Portfolio Summary

The LEADERS Model

Position

TargetExposure

ETFSymbol

% of Model

Date Purchased

Purchase Price

CurrentRating

Health Care Select Sector SPDR

33.3%

XLV

33.3%

6.14.17

$77.84

Hold

Technology Select Sector SPDR

33.4%

XLK

33.4%

12.1.16

$46.64

Hold

Materials Select Sector SPDR

33.3%

XLB

33.3%

3.17.16

$52.38

Buy

The CORE EXPOSURE Model

Position

TargetExposure

ETFSymbol

% of Model

Date Purchased

Purchase Price

CurrentRating

ProShares UltraPro S&P (3X)

90%

UPRO

30.00%

Various

$98.78

Buy

The TRADING Model

Position

TargetExposure

ETFSymbol

% of Model

Date Purchased

Purchase Price

CurrentRating

iShares Eurozone ETF

20%

EZU

20%

5.11.17

$40.25

Hold

First Trust Value Line Dividend Fund

20%

FVD

20%

5.11.17

$28.88

Buy

iShares Emerging Markets ETF

20%

EEM

20%

6.19.17

$41.57

Buy

VanEck Vectors India Small-Cap Index ETF

20%

SCIF

20%

7.18.17

$58.00

Buy

Target Exposure ExplainedThis column is the goal percentage in terms of the overall exposure for the model. This is shown due to the fact that we utilize leveraged ETFs.

% of Model Explained The number shown in this column represents the percentage of the the model this position represents.

Current Rating ExplainedThis is our rating for the day. The Current Rating tells you what action we would take if we did not currently hold the position. A "Buy" rating means we would be willing to purchase the position at current prices. A "Strong Buy" suggests this would be our first choice to buy. A "Hold" rating indicates we would not make new purchases at current levels. And a "Sell" rating indicates we will likely exit the position in the near-term.

Positions Can ChangePositions often change during the trading session. Remember that we will send a Trade Alert via SMS Text Message and/or Email BEFORE we ever make a move in the models.

About the Daily Decision Trading ServiceOur easy-to-follow Daily Decision Trading Service is a modern, pro-level, multi-strategy, multi-manager approach that is made up of three models. The goal is to provide different types of models for subscribers to follow:

- The LEADERS Model
- The CORE EXPOSURE Model
- The TRADING Model

THE LEADERS Model: This model focuses on the top sectors in the market. Because in short, when technology, biotech, the banks etc., start to heat up, we want to make sure we have an overweighted exposure to the market leaders.

THE CORE Model: This risk-managed position is designed to provide the appropriate level of exposure to the U.S. stock market given the current risk/reward environment and makes up one-third of the overall DDTS portfolio. The goal of the CORE is to give us "the forest" and to stay in tune with the market's big, important moves. And when the bears come to call, the CORE is designed to take defensive measures by moving into capital preservation mode.

THE TRADING Model: This model seeks trading opportunities based on swing-trading and mean-reversion strategies. These are designed to be short-term positions and the primary goal is simple: to add value via an opportunistic approach to trading!

NOT INVESTMENT ADVICE. The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment.